Section 85 — Property Law Act 2007: Variation of mortgage

85 Variation of mortgage (1) The principal amount secured by a mortgage over property may be reduced or increased by an instrument that— (a) complies with subsection (5); and (b) is executed,— (i) in the case of a reduction, by the mortgagee; or (ii) in the case of an increase, by the current mortgagor; and (c) states that the principal amount intended to be secured by the mortgage is reduced or increased, as the case may be, to the amount or in the manner specified in the instrument, or words to that effect. (2) The rate of interest payable under a mortgage over property may be reduced or increased by an instrument that— (a) complies with subsection (5); and (b) is executed,— (i) in the case of a reduction, by the mortgagee; or (ii) in the case of an increase, by the current mortgagor; and (c) states that the rate of interest payable under the mortgage is reduced or increased, as the case may be, to the rate or sum or in the manner specified in the instrument, or words to that effect. (3) The term or currency of a mortgage over property may be shortened, extended, or renewed by an instrument that— (a) complies with subsection (5); and (b) is executed by the current mortgagor and by the mortgagee; and (c) states that the term or currency of the mortgage is shortened, extended, or renewed, as the case may be, to the date or in the manner specified in the instrument, or words to that effect. (4) The covenants, conditions, and powers expressed or implied in a mortgage over property may be varied, negatived, or added to by an instrument that— (a) complies with subsection (5); and (b) is executed by the current mortgagor and by the mortgagee; and (c) states that the covenants, conditions, and powers expressed or implied in the mortgage are varied in the manner specified in the instrument, or words to that effect. (5) For the purposes of subsections (1) to (4), a mortgage variation instrument must— (a) be endorsed on, or attached to, the mortgage instrument, or have its existence recorded on or with the mortgage instrument; and (b) be executed in the same manner as a deed is required to be executed. (6) A mortgage over land under the Land Transfer Act 1952 may also be varied by a mortgage variation instrument that is registered under that Act. Compare: 1952 No 51 s 79(1)(c)–(f), (3)